Floater

Example

“After her engagement ring was appraised at $15,000, Lisa added a personal property floater to her homeowners policy to ensure full coverage anywhere she traveled.”

Memory Tip

Think of a 'floating' balloon that follows you everywhere - a floater policy follows your valuable items wherever they go.

Why It Matters

Floaters provide crucial protection for expensive personal items that standard homeowners policies either don't cover adequately or have significant limitations on. Without floaters, individuals risk major financial losses if valuable items are lost, stolen, or damaged.

Common Misconception

Many people assume their homeowners insurance provides adequate coverage for all personal property, but standard policies often have low sub-limits for categories like jewelry ($1,500-$2,500 typically) and may exclude certain types of losses. Floaters provide 'all-risk' coverage with higher limits.

In Practice

A photographer owns $25,000 worth of camera equipment. Her homeowners policy only covers $2,500 for cameras and excludes coverage outside the home. She purchases a camera equipment floater for $400 annually that covers the full $25,000 value worldwide, including accidental damage. When her camera bag is stolen from her car during a wedding shoot, the floater pays the full $8,000 replacement cost rather than the $2,500 homeowners limit.

Etymology

The term 'floater' originated in marine insurance in the 1800s, describing cargo that could 'float' between different ships and locations while maintaining coverage.

Common Misspellings

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See Also